Crypto Market Outlook: Bitcoin Strong, AI May Become the Next Trend

Recently, the crypto market has shown a complex trend. Bitcoin has once again reached a high of $110,000, while the altcoin market has experienced significant volatility. Nevertheless, Bitcoin and Ethereum still demonstrate relatively robust performance.

After analyzing the current market situation, the following observations can be made:

The overall trend of the market is yet to be clarified.

It is expected that the real market trends will only become apparent after September. Considering factors such as macroeconomic resistance, summer liquidity constraints, and quarterly position adjustments, it is only when market participants return after the August holiday that the actual trends may become clear.

The recent rise of altcoins has been primarily driven by short squeezes, lacking support from long-term holders. Many traders chased the rally influenced by previous rebounds, only to face severe corrections afterward. In contrast, tokens with real utility, strong fundamentals, or buyback mechanisms have shown greater resilience, experiencing smaller declines and recovering more quickly.

Bitcoin demand remains stable

Traditional capital is gradually entering the Bitcoin market through regulated channels such as ETFs. Currently, the nature of funds supporting Bitcoin is very different from previous cycles, which is why, unless impacted by significant macro events, large-scale sell-offs of Bitcoin are unlikely.

The differentiation of the altcoin market intensifies

In the long run, funds may flow back to some altcoins, but it will not be comprehensive. Only projects with clear purposes and practical application scenarios are likely to attract these funds. This is also why Ethereum may outperform Solana. Factors such as clear regulation, increased DeFi usage, deflationary structure, and staking demand have collectively formed a positive cycle for Ethereum.

Tokens Supported by Venture Capital Face Pressure

Token unlocks will continue to put pressure on prices. In the case of insufficient liquidity, the ongoing sell-off by validators and early investors limits the upside potential. Therefore, high-valued tokens listed on centralized exchanges may perform poorly in the future. Tokens in the Cosmos ecosystem, in particular, face ongoing selling pressure, which is related to their validator reward structure.

The Meme Coin Craze May Dwindle

Although Meme coins have certain structural advantages, such as no venture capital unlocking and fair distribution, this phase seems to be coming to an end. The recent issuance of Pump.fun tokens and the launch of Trump coins may mark the peak of interest in Meme coins. After that, the market's interest in Meme coins began to weaken.

In the future, only those Meme coins with strong narratives and market recognition may have real speculative value. Meanwhile, fairly issued Web2/3 projects could become the next wave of wealth creation opportunities.

The Combination of AI and Encryption May Become a New Hotspot

As the hype around Meme coins cools down, market attention may shift to new narratives. The combination of AI and encryption is expected to become the next focal point. Many AI + crypto projects adopt a fair distribution model, responding to the market's demand for such projects. Although most AI projects after early speculation have failed, some truly practical projects are quietly developing.

If the market rises strongly again, the AI + encryption field may contain the greatest asymmetric opportunities. Investors can closely monitor this area, but there is no need to rush to establish full positions. Maintaining patience and caution, and waiting for the right moment to allocate may be a wise choice.